Why is Cash Flow Important
Cash Flow Meaning
Cash flows are income (in flow) and expenses (out flow) from your bank account.
There maybe perfectly valid reasons for spending more than you earn, for example funding investments or dealing with problems. It is important to manage your money sensibly, and to do that you need good visibility of your cash flow. This is the purpose of this personal finance app.
It is crucial not to run out of cash, otherwise you will go bankrupt. Going bankrupt is not the end of the world, but does mean you will have to start over.
How to Avoid Going Bankrupt or Broke
Businesses do not go bankrupt because they stop making profits. Businesses only go bankrupt because they run out of cash. Even profitable businesses fail if they run out of cash.
People do not go broke because they stop earning money. People only go broke because they run out of cash. Even high earning people go broke if they run out of cash.
To avoid going bankrupt or broke you need to manage your cash flow.
We Are Not Reinventing The Wheel
Money has been around for thousands of years, managing money has been around ever since the first person went broke.
In business, accountants provide clear visibility to management of cash flow, which is basically how money is being spent (expenses) and earned (income). This enables management to make good financial decisions.
This app uses the same technique to provide you with clear visibility of how your cash is being spent (expenses) and earned (income), enabling YOU to make good financial decisions.
Who Should Manage Their Cash Flow
If you don't want to go broke you need to manage your cash flow, so you don't run out of money.
If you want to be comfortable you need to manage your cash flow, so it provides a level of comfort.
If you want to be rich you need to manage your cash flow, so you can put some cash into investments.